ANZ has issued its second Sustainable Development Goals (SDG) Bond in European wholesale debt capital markets, raising €1 billion in Tier 2 capital to fund its lending to sectors such as aged care, education and the environment.
The bond is the first Euro SDG Tier 2 bond issued by any bank globally, bringing the total size of ANZ bonds on issue in Green and SDG formats to $A3.4 billion, equivalent.
Priced at a spread of 140 basis points over the mid-swap, the 10-year (with a five-year call) bond was heavily oversubscribed, with orders of more than €2.7 billion from more than 150 European and Asian institutional investors.
ANZ Group Treasurer Adrian Went said the bank’s commitment to sustainability had helped drive interest in the bond.
“The strong market reception was assisted by the important alignment between ANZ’s purpose and our public commitment to sustainable lending,” he said.
“Investors were genuinely supportive of ANZ’s SDG framework, our approach to investor engagement and our market leading disclosures, including impact reporting.”